Global markets lose steam in European trading
TOKYO (AP) — World stock markets turned lower during European trading hours Friday as investors worried again about Turkey’s financial trouble, after Asian stocks rose on news China is preparing to resume trade discussions with the U.S.
KEEPING SCORE: Britain’s FTSE 100 fell 0.3 percent to 7,537 and the CAC 40 in France shed 0.3 percent to 5,332, while Germany’s DAX lost 0.7 percent to 12,156. The future contracts for the Dow Jones industrial average and S&P 500 were both down 0.1 percent.
TURKEY: The country’s currency fell again, trading down about 5 percent, after the U.S. threatened to impose more sanctions and Turkey said it would retaliate. The diplomatic dispute is about an American pastor jailed in Turkey, and is worsening financial concerns about Turkey, which has high debt and inflation. The country’s problems are not expected to pose a major threat to European or U.S. markets but investors have become more cautious in the past week.
ASIA’S DAY: Earlier, Japan’s Nikkei 225 index added 0.4 percent to close at 22,270.38, while the Shanghai Composite index shed 1.3 percent to 2,668.97. Hong Kong’s Hang Seng gained 0.4 percent to 27,213.41 and India’s Sensex jumped 0.8 percent to 37,957.33. In South Korea, the Kospi gained 0.3 percent to 2,247.05. Australia’s S&P ASX 200 picked up 0.2 percent to 6,339.20. Shares were higher in Taiwan, Thailand and Singapore but fell in Malaysia.
CHINA TRADE: China will send a trade envoy to Washington later this month in a fresh attempt to end the trade dispute before it causes major damage to the global economy. The two sides haven’t talked since early June. After the latest round of talks failed to produce much progress, both countries put taxes on $34 billion in each other’s imports. Those tariffs are set to rise next week, and both countries have threatened even larger increases as early as September.
ENERGY: U.S. crude picked up 32 cents to $65.78 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the standard for international oil prices, climbed 62 cents to $72.05 per barrel.
CURRENCIES: The dollar fell to 110.46 yen from 110.89 yen. The euro rose to $1.1393 from $1.1379.